Keurig Dr Pepper Announces Strategic Partnership with Red Bull

Rhea-AI Summary

Keurig Dr Pepper (NASDAQ: KDP) has announced a strategic partnership with Red Bull to distribute its energy drink products exclusively in Mexico. This partnership allows KDP to leverage its extensive distribution network across independent retailers, including grocery and convenience stores, and to explore future ready-to-drink products from Red Bull. CEO Ozan Dokmecioglu emphasizes the importance of energy drinks in KDP's growth strategy. The collaboration is expected to commence in Q4 2022, enhancing KDP's presence in the energy drink market.

Positive

• KDP gains exclusive distribution rights for Red Bull in Mexico, enhancing market presence.
• Partnership allows KDP to distribute future ready-to-drink products from Red Bull.
• Strengthens KDP's distribution capabilities in the energy drink category.

Negative

• None.

BURLINGTON, Mass. and FRISCO, Texas, Oct. 6, 2022 /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) today announced a strategic partnership with Red Bull, the iconic global energy brand, to sell and distribute Red Bull in Mexico, further leveraging and expanding KDP's successful partner network strategy. 

The sales and distribution partnership provides KDP with exclusive rights to distribute Red Bull Energy Drink products across independent retailers such as grocery, convenience, pharmacy and kiosks, as well as the wholesale, regional key account and on-premise channels in the country, with some exclusions.  The partnership also provides the company with the option to distribute future ready-to-drink (RTD) beverage products that Red Bull may launch in Mexico in these locations.

Commenting on the announcement, KDP CEO Ozan Dokmecioglu stated, "This new agreement furthers KDP's commitment to partnerships, which are a core element of our growth strategy in which we create long-term, win-win relationships for both KDP and our strategic partners.  The agreement demonstrates the strategic importance of energy to us and provides us the opportunity to partner with the #1 energy brand in the world.  We look forward to working with Red Bull and believe this new partnership has the potential to expand over time."

Gilberto Maldonado, KDP SVP & General Manager of Mexico, added, "The addition of the Red Bull brand to KDP's powerful, nationwide distribution network in Mexico strengthens our presence in the energy drink category and leverages our distribution capabilities to expand availability of Red Bull in the country.  We are excited to begin selling and distributing Red Bull and expect to begin doing so during the fourth quarter of this year." 

Terms of the agreement were not disclosed.

KDP Contacts

Steve Alexander (Investors)
T: 972-673-6769 / steve.alexander@kdrp.com

Chethan Mallela (Investors)
T: 646-620-8761 / chethan.mallela@kdrp.com

Katie Gilroy (Media)
T: 781-418-3345 / katie.gilroy@kdrp.com 

About Keurig Dr Pepper

Keurig Dr Pepper (KDP) is a leading beverage company in North America, with annual revenue approaching $13 billion and approximately 27,000 employees. KDP holds leadership positions in soft drinks, specialty coffee and tea, water, juice and juice drinks and mixers, and markets the #1 single serve coffee brewing system in the U.S. and Canada. The Company's portfolio of more than 125 owned, licensed and partner brands is designed to satisfy virtually any consumer need, any time, and includes Keurig®, Dr Pepper®, Green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott's®, CORE® and The Original Donut Shop®. Through its powerful sales and distribution network, KDP can deliver its portfolio of hot and cold beverages to nearly every point of purchase for consumers. The Company is committed to sourcing, producing and distributing its beverages responsibly through its Drink Well. Do Good. corporate responsibility platform, including efforts around circular packaging, efficient natural resource use and supply chain sustainability. For more information, visit www.keurigdrpepper.com.

FORWARD LOOKING STATEMENTS

Certain statements contained herein are "forward-looking statements" within the meaning of applicable securities laws and regulations. These forward-looking statements can generally be identified by the use of words such as "outlook," "guidance," "anticipate," "expect," "believe," "could," "estimate," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," "target," "will," "would," and similar words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially.

Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in our Annual Report on Form 10-K and subsequent filings with the SEC. We are under no obligation to update, modify or withdraw any forward-looking statements, except as required by applicable law.

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SOURCE Keurig Dr Pepper Inc.

FAQ

What is the strategic partnership between KDP and Red Bull about?

KDP has partnered with Red Bull to exclusively distribute its energy drinks in Mexico, leveraging KDP's extensive distribution network.

When will KDP begin distributing Red Bull products in Mexico?

KDP expects to begin selling and distributing Red Bull products during the fourth quarter of 2022.

How does the partnership with Red Bull benefit KDP?

The partnership enhances KDP's market presence in the energy drink category and allows for the distribution of future ready-to-drink products.

What channels will KDP use to distribute Red Bull in Mexico?

KDP will distribute Red Bull through independent retailers including grocery, convenience, pharmacy, and kiosks, along with wholesale and regional key accounts.